Gabriel Perez, a White House teleprompter operator, is no longer a federal employee after being placed on unpaid leave over allegations he used advance knowledge of President Trump's speeches to make more than $100,000 betting on the prediction market Kalshi. The suspension came earlier this month following an ABC News report that detailed the trades, including bets placed before the State of the Union address.
What the allegations say
According to the ABC report, Perez placed bets on Kalshi using nonpublic information about the content and timing of Trump's remarks. The platform's surveillance team detected the unusual trading activity, investigated internally, and then referred the matter to the Commodity Futures Trading Commission, said Kalshi lawyer Robert Denault. White House press secretary Karoline Leavitt called the reported insider trading 'deeply unfortunate and, frankly, a disgrace.'
Kalshi's track record with insider trading
This isn't the first time Kalshi has dealt with insider trading accusations. In April, the platform suspended three political candidates for betting on elections they were themselves contesting, calling it political insider trading under CFTC-approved rules. The company has also faced legal pushback in Massachusetts, Michigan, Nevada, and Washington over its operations.
A soldier's similar case on Polymarket
Separately, U.S. soldier Gannon Ken Van Dyke was charged with insider betting on the decentralized platform Polymarket. He allegedly made about $400,000 wagering on the removal of Venezuelan President Nicolás Maduro, using nonpublic information. The case highlights how prediction markets are struggling to police insider activity across different platforms and jurisdictions.
Minnesota's ban temporarily blocked
Meanwhile, a federal judge temporarily blocked Minnesota from enforcing a new law that would ban prediction markets. The law, signed by Governor Tim Walz in May, was set to take effect Saturday. The judge ruled the state ban is likely preempted by the Commodity Exchange Act, though he said the injunction could later be narrowed. The case is one of several legal battles over the regulation of event-based contracts.
The White House has not commented on whether it will tighten internal rules on political betting. The CFTC's investigation into the matter is ongoing.
